Rhapsody [free - iTunes Link] is now available in the iTunes App Store. It was less than a month ago that we told you about the submission of RealNetwork’s Rhapsody iPhone app, well Apple may have been scared straight by the FCC because it’s been approved and is now available as a free download.

Now don’t don’t forget there is a $15/month subscription fee you must dish out if you want all of that music streaming goodness over AT&T’s data network or Wi-Fi. Sorry folks, no off-line access like Spotify here.

In a strange twist of fate, PreCentral.net tells us Palm has rejected their first App Catalog app, NaNPlayer, a (superior according to PC) replacement for the built-in Pre music player. Why did they do this? The developer used an undocumented API and that violates the SDK agreement. Sound familiar, iPhone users? Will Palm now get the same grief Apple does?

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